REAL ESTATE: Pacific Premier Bank in San Diego market

Pacific Premier Bank, a company that picked up the failed operations of Palm Desert National and Canyon National banks in the economic downturn, is now advancing into the San Diego market.

The bank, with 13 branches in Southern California cities that includes San Bernardino, Palm Springs and Palm Desert, on June 25 finalized the acquisition of San Diego Trust Bank.

San Diego Trust Bank, a state-chartered bank founded in 2003, agreed March 6 to be sold to Pacific Premier Bancorp, parent of the Costa Mesa-based bank operated by parent, Pacific Premier Bancorp.

San Diego Trust was sold in a stock and cash deal valued at $30.9 million, which included: $14.4 million in cash, $14.7 million in stock consideration and $1.8 million in cash consideration to the holders of San Diego Trust Bank.

Steven Gardner, president and chief executive of Pacific Premier, said the company is excited about extending its brand into the San Diego market.

“It will provide excellent opportunities to continue to grow our franchise,” Gardner said in a June 26 statement. “San Diego Trust Bank has built an attractive base of commercial customers, and they will continue to be served by the same exceptional team they have known and trusted for years,” Gardner said.

Pacific has been in growth mode for two years.

The Federal Deposit Insurance Corp., acting as a receiver for Palm Desert National Bank, struck a deal in May 2012 with Pacific Premier to pick up the operations of that failed Coachella Valley bank, which had $122.8 million in deposits and $125.8 million in total assets.

In February 2011, Pacific Premier bought up another Coachella Valley bank, Canyon National Bank of Palm Springs, after it failed. That deal brought with it $210.9 million in assets.

With the addition of San Diego Trust, Pacific Premier’s portfolio as of March 31 includes company assets totaling $1.6 billion with total loans outstanding at $983.5 million and total deposits of $1.4 billion.

Under terms of the newest acquisition, Pacific Premier will pay San Diego Trust shareholders $13.41 in cash or 1.114 shares of Pacific’s common stock, or a blend of both. The conversion is capped at 50 percent of the total consideration, or $15.3 million. The rest would be paid in stock.

Other Pacific Premier branch offices are in Encinitas, Huntington Beach, Irvine, Los Alamitos, Newport Beach and Seal Beach. The company also operates an office in Dallas, Texas.